pieNETWORKS to raise $2.3m in placement

Internet kiosk developer pieNETWORKS (ASX:PIE) has announced a share placement to raise $2.3 million.

The placement, priced at 1.6 cents per share, will be made to institutional and sophisticated investors.

Managing director Campbell Smith said the company will use the funds to pursue the commercialisation of its Hotspot Webphone product.

pieNETWORKS last year commenced a trial deployment of 50 of the combined phone and internet kiosks for Telstra.

In August, pieNETWORKS said Telstra had deemed the trial a success, and that the companies are currently in negotiation for a larger-scale deployment.

As well as domestic activities, the funds will be put towards pursuing opportunities in international markets, Smith said.

The placement follows a $2.15 million rights issue conducted earlier in the year.

PIE shares fell 5% on Monday to $0.019.